Sanctions Watch | Weekly Vol. 151

Sanctions Watch Vol 151

In the latest edition of our Sanctions Watch weekly digest, we present significant updates on sanction watchlists and regulatory developments.

OFAC Extends Authorization for Lukoil International GmbH Divestment and Wind-Down Activities

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License 131E under the Russian Harmful Foreign Activities Sanctions Regulations, extending temporary authorization for certain transactions involving Lukoil International GmbH (LIG) and its related entities.

The license authorizes transactions ordinarily incident and necessary to the negotiation and entry into contingent contracts related to the sale, transfer, or disposition of LIG and entities in which it owns, directly or indirectly, a 50 percent or greater interest. The authorization remains valid through May 30, 2026, provided that execution of such contracts is contingent upon separate OFAC approval.

OFAC also authorized activities necessary for the maintenance or wind-down of operations, contracts, and agreements involving LIG entities during the same period. In addition, blocked accounts of LIG entities may be used for transactions covered under the wind-down authorization.

However, the license does not authorize the unblocking of property beyond specified exceptions, transactions involving other sanctioned persons under the Russian Harmful Foreign Activities Sanctions Regulations, or transfers of funds to persons or accounts located in Russia.

U.S. Expands Cuba Sanctions Targeting Officials, Businesses, and Foreign Financial Institutions

U.S. President Donald Trump has signed a sweeping Executive Order imposing expanded sanctions on Cuba, significantly broadening Washington’s authority to target Cuban government-linked entities, foreign businesses, and financial institutions accused of supporting repression, corruption, and activities deemed harmful to U.S. national security.

The order authorizes the blocking of assets and property belonging to foreign individuals and entities operating in key sectors of the Cuban economy, including energy, defense, mining, financial services, and security. It also targets persons acting on behalf of the Cuban government, materially assisting sanctioned actors, or engaging in corruption and serious human rights abuses linked to Cuba.

In a major escalation, the Executive Order authorizes the U.S. Treasury Department to impose secondary sanctions on foreign financial institutions that facilitate significant transactions for sanctioned persons. Potential penalties include restrictions on correspondent banking relationships in the United States and full blocking sanctions.

The order also imposes travel restrictions, suspending entry into the United States for designated individuals connected to the Cuban government or activities covered under the sanctions criteria.

According to the White House, the measures are intended to address threats posed by the Cuban government to U.S. foreign policy interests, while responding to alleged political repression, corruption, and anti-democratic practices in Cuba. The sanctions build upon the national emergency framework established under Executive Order 14380 earlier in 2026.

OFAC Authorizes Wind-Down Transactions Involving Sanctioned Chinese Oil Terminal Linked to Iran

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License W, authorizing the temporary wind-down of certain transactions involving Qingdao Haiye Oil Terminal Co., Ltd., a sanctioned Chinese oil terminal operator linked to Iran-related sanctions measures.

Under the license, transactions ordinarily incident and necessary to wind down dealings with Qingdao Haiye Oil Terminal Co., Ltd., or entities in which it owns, directly or indirectly, a 50 percent or greater interest, are authorized through May 31, 2026. The authorization applies solely to activities covered under Executive Order 13846, which reimposed sanctions on Iran.

OFAC stated that any payments involving blocked persons must be deposited into blocked, interest-bearing accounts located in the United States.

The general license does not authorize transactions involving other persons sanctioned under Executive Order 13846 unless separately approved by OFAC. The measure provides companies and financial institutions with a limited period to terminate or unwind existing business relationships while remaining compliant with U.S. sanctions regulations targeting Iran-related activities.

Russia Expands EU Entry Bans in Response to Brussels’ 20th Sanctions Package

Russia has announced a significant expansion of entry restrictions against European Union officials, lawmakers, academics, and civil society figures in response to the EU’s 20th sanctions package adopted on April 23, 2026. The Russian Foreign Ministry described the sanctions as “unlawful” and accused Brussels of violating international law by circumventing the United Nations Security Council.

According to the ministry, the expanded blacklist targets representatives of EU institutions, member states, and other European countries aligned with the bloc’s anti-Russian policies. Those affected include individuals involved in military assistance to Ukraine, the implementation of anti-Russian sanctions, actions perceived as undermining Russia’s territorial integrity, and initiatives related to the seizure of Russian sovereign assets or the establishment of a tribunal against Russian leadership.

The restrictions also extend to members of European academic and civil society communities deemed hostile to Russia, as well as lawmakers from EU national parliaments and the European Parliament who supported anti-Russian resolutions and legislation.

Moscow stated that the measures were imposed under Russia’s federal law governing entry into and exit from the country. The Foreign Ministry further asserted that Western sanctions pressure would not alter Russia’s foreign policy course, emphasizing Moscow’s commitment to protecting national interests and promoting what it described as a “fair multipolar world order.”

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Sanctions Watch is a weekly recap of events and news related to sanctions around the world.